ACTION NEEDED: Colorado Retail Delivery Fee begins July 1, 2022

@nneilitz - My take was that the fee only applies once per order, regardless of # of shipments.

https://tax.colorado.gov/retail-delivery-fee#:~:text=Each%20sale%20for%20delivery%20is%20considered%20a%20single%20“retail%20delivery”%20regardless%20of%20how%20many%20shipments%20are%20needed%20to%20deliver%20the%20items%20purchased.

We address it 2 ways for now. Salespeople ‘try’ to remember to add the $0 misc header charge so Avalara can catch it during sales tax calculation. We also run a BAQ monthly that shows the taxable CO orders that missed getting the fee, and add that to our CO sales tax return. It’s a lot of effort for $15! :man_facepalming:

The way I’d interpret that is that if you have lines going different places, you will need multiple delivery fees as well. If they are going the same place, I’d agree only need one. Good to know. In any case I think misc codes to be the better choice.

I just queried ours and we have ~ $7 - so ya, not worth the work at all. I don’t think they really understood the implications of the tax/legislation.

So if you take your BAQ, make a report and then send a daily exception report, this is similar to what we did (ours is on orders) I just check that each morning. Initially I added in the charges (first two weeks) but then the CSRs started catching on. We haven’t missed one yet. Since I’m checking for various other exceptions it really doesn’t take but a couple of seconds for the check.

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It seems pretty clear its only due once per order.

We decided to do ours at the time of Invoicing and not the Order. This way we can Consolidate Shipments & Invoices. Still works well with Master Pack etc. I hope this helps someone.

Because if you add them at the time of Order you are basically assuming they will be shipped separately.

It doesn’t mentioned delivery location in the verbiage - you would need to clarify I suppose. I’m really not going to worry about it.

Adding them at the order precludes extra work for the shipping department. Doesn’t matter how they are shipped.

If you add them to the order, how does Epicor handle Partial Shipments or Partial Invoicing? Epicor may apply the charge during invoicing twice?

I guess if you dont do partials and you don’t have Blanket Orders, you may be fine.

We decided to add it at Invoicing by SUMing up Orders where Order Date isnt the same. But like everyone else, we are just waiting for this fee to fall dead in court.

** Wait one **, so checked with A/R and she says nope MISC only applies once per the order. No issue on the partials. Not sure about blanket orders in general - what defines this, how does the law apply but at worst we are charging and passing a long a couple of extra $.27 fees.

So much for it being named DELIVERY FEE :smiley: I for a moment for whatever reason thought it is a Shipment Fee to offset their tolls, roads etc…, not per order where Order By Date isnt the same.

You really need to absorb this paragraph into your heart, and Alternatively isnt an Alternative :slight_smile:

FYI…

What you need to know about the Colorado retail delivery fee now

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FYI, latest news about potential changes…

Interesting article, basically the new bill does what we’re doing now (I just ran my monthly BAQ showing 72 deliveries to CO, which we use to do the tax submission.

Also:

It will be interesting to see what happens with this bill, and whether there’s any ripple effect. Already, Minnesota lawmakers are considering a similar retail delivery fee for the Land of 10,000 Lakes; and the New York State Assembly included a 25-cent fee on delivery transactions in its sprawling budget bill for the 2023–24 fiscal year.

Blech. Although I’m shocked that CA isn’t on this bandwagon - they’re usually pioneers in creating onerous business requirements.

Good news… at least for those who have not yet addressed the law that became effective July 1, 2022… and probably really aggravating news for those who took steps to address the issue!

Colorado may simplify retail delivery fee requirements - UPDATE!

Retail delivery fees no longer apply to qualified small, new businesses

Maybe something similar can happen in Minnesota

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Procrastination pays off again

Remember, April is National Procrastination Month!

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Damn, missed it again… too busy trying to start my New Year’s resolution to exercise and read more!

I’ll celebrate later.

This was a fascinating read.

What a damn mess.

I read the Colorado update to mean that if you have less than $500k in retail sales to colorado (calendar year) you do not need to do this fee/tax.
So, we can now stop paying the $2/month to colorado for our small volume!

Not so fast… maybe soon you will pay Minnesota.